EIB, CEPSA sign $305 million loan to finance the construction of a second-generation biofuels plant in Spain

In Luxembourg, The European Investment Bank (EIB) and Cepsa signed a $305 million loan agreement for the construction of an advanced biofuels plant to be located next to the ¨La Rábida Energy Park¨ in Palos de la Frontera, Andalusia.

The plant, which Cepsa is building together with Bio-Oils, will produce sustainable aviation fuel and renewable diesel (HVO), from organic waste such as used cooking oil or from agricultural waste. Once operational, the facility is expected to process as much as 600,000 tons of waste and produce up to 500,000 tons of second-generation biofuels annually.

The biofuels will serve industries such as, aviation, maritime transport and even heavy-duty road transport for which decarbonization and electrification pose challenges. 

”This loan is a clear example of how the EIB promotes the energy transition also in hard to abate sectors. This project will contribute to make Spain one of the leading countries in the production of biofuels,” said Gilles Badot, director of EIB operations for Spain and Portugal.  “Supporting private companies like Cepsa, which are investing in this transition and advancing their own decarbonization strategies, is one way the EIB is accelerating the transition to a more sustainable energy model that promotes EU energy autonomy.”

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